Large streaming services and record labels are reportedly resisting attempts to apply radio restrictions to on-demand services, as well as broader broadcasting reforms, including Canada’s contentious Online Streaming Act.
These issues were brought up in a letter to the Canadian Radio-television and Telecommunications Commission (CRTC) by Music Canada, which represents the Canadian operations of the big labels, and DIMA, which represents streaming services like Spotify and Apple Music.
That is the Canadian government organization responsible for implementing the aforementioned Online Streaming Act, which is an extension and modification of the current Broadcasting Act. To put it briefly, the rule, which levies a 5% tax on on-demand platforms, has been challenged by major league baseball teams and top streaming services for a while now.
(In addition to offering a thorough analysis of what the extensive Online Streaming Act actually implies for services, we previously looked more closely at the tax’s provisions and the legal problems faced by the companies named.)
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The CRTC website outlines the implementation process, which appears to be complex, at the same time as the aforementioned difficulties. Most recently, this process resulted in many “engagement sessions” earlier in September, several of which included involvement from DIMA and Music Canada members.
The organizations are now using this occasion to emphasize that “radio and audio streaming are not the same,” since they were urged to submit textual feedback on the sessions.
“Out of context, it may seem strange that Canada’s biggest streaming services and record labels would write to a regulator stating a given, but we feel that the recent workshops have made this necessary,” they wrote.
There was an obvious attempt to position the continuation of radio rules on audio streaming services as the logical next step, from the discussion guide to the moderated questions. We disagree.
The organizations are urging the CRTC to “think of the streaming services and their interactions with Canadians for what they are today and not as a proxy to the broadcasting system of the 1900s” as the implementation moves closer to completion.
More specifically, streaming promotes more discoverability than radio, caters to individual listening tastes, offers a vast array of features and content, and encourages worldwide consumption rather than just local listening.
It will be important to keep an eye on the effects of these and other remarks made by Music Canada and DIMA in the future. As previously mentioned, nevertheless, the broader broadcast-framework overhaul will take time to implement. The new comprehensive regulatory framework is reportedly “targeting launch late 2025,” according to the CRTC’s website, which also lists a number of incomplete processes.
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